Strategic Analysis Tools Flashcards
Why are companies important to integrate into environmental management?
100 companies responsible for 71% of global emissions
What types of responsibility does a company have?
Philanthropic responsibilities - be a good corporate citizen (desired) care for local communities
Ethical responsibilities - behave ethically (expected) health and safety, carbon consciousness
Legal responsibilities - obey the law (required)
Economic responsibilities - be profitable (required)
- Maximising shareholder value
Some believe that a firm’s only responsibility is to meet legal and economic
Why does explicit CSR (USA) and implicit CSR (Europe) differ across geographies?
Different formal and informal institutions (regulation, religion, tradition) in
- Political systems
- Financial systems
- Cultural systems
which shape understanding of economic, legal, ethical and philanthropic responsibilities
Where is philanthropy more essential?
Africa: their priorities go:
economic, philanthropic, legal and ethical
More essential due to lack of legislation. Substitution for the role of the public sector. Disclosure of info less important than the west.
How are there different priorities across industries?
Depends on industry visibility - degree of attention the industry attracts from society
- Level of competition
- Level of environmental, financial or production risk
- Number of customers/amount of employment or tax generated
E.g BP in a highly visible environment
Thomas Cook in a less visible environment
How does PESTLE relate to environmental sustainability analysis and informing more detailed organisational planning of sustainable strategy ?
Political - bureaucracy, corruption level, freedom of the press, tariffs, trade control, gov stability
Economic - economic growth, inflation + interest rates, unemployment + labour supply, labour cost. disposable income
Sociological - education, living standards, ethical issues, ethnic/religious factors
Technological - research funding, technology access, licensing, patents, potential innovation, advances manufacturing
Legal - consumer, discrimination, copyright, health and safety, employment and environmental law
Environmental - climate change, pollution, energy issues, waste management, availability of non-renewable goods
What is a sustainability SWOT analysis?
Environmental challenges and big trends informing opportunities and threats which firms use strengths and weaknesses in order to prioritise and act on info
What is the materiality matrix?
Establishing where issues lie in terms of importance to stakeholders vs importance to business
How businesses can prioritise the different requirements
Material issue - understood in accounting as a factor that can have significant financial impact on an org
What is a business model canvas?
Describes how an organisation creates, captures and delivers value, in economic, social, cultural or other contexts
Key partners, key activities, key resources, value proposition, cost structure,
Customer relationships, customer segments, channels, revenue streams
What do Linnenluecke and Griffiths (2010) say about corporate sustainability and organisational culture?
Need a sustainability-oriented culture.
Employees from different culture types place emphasis on different aspects of their pursuit of sustainability: internal staff development, resource efficiency, environmental protection or stakeholder engagement.
What is the competing values framework according to Linnenluecke and Griffiths (2010)?
Illustrates the competing demand with an organization on two dimensions: flexibility-control and internal-external.
Can balance the competing demands but likely that one quadrant will dominate
Overemphasis on culture type can lead to dysfunction e.g internal process value overemphasis = bureaucracy = resistant to change
What are the different values in the comporting values framework according to Linnenluecke and Griffiths (2010)?
Human relations model (internal, flexible)
Open systems model (external, flexible)
Internal process model
(internal, control)
Rational goal model
(external, control)
How does the human relations model (CVF) relate to corporate sustainability?
Aim of cohesion and morale
Use of training, open communication, participative decision making to upgrade human knowledge and skills
Supports social entrepreneurship - strong non-economic interests
How does the open systems model (CVF) relate to corporate sustainability?
Aim of growth and resource acquisition
Use of adaptability and change, horizontal communication, flexible decision making
Discretionary behaviour and autonomy
Emphasis on innovation for achieving ecological and social sustainability, not separate entities from the natural environment but located within it
How does the internal process model (CVF) relate to corporate sustainability?
Aim of stability and control
Use of information management, vertical communication, data-based decision making
Focus on economic performance, scientific management
Long term profitability is the key to the pursuit of corporate sustainability
